687 Credit Score
January 21, 2009 by VideoCreditScore-Andy
Filed under Credit Scores
A 687 Credit Score could mean higher interest rates and higher payments. Is your score a FICO credit score? You can start watching it for free using a Free Trial product called Score Watch.
This 687 Score is:
- 73 points lower than the highest break point of 760 FICO credit score to get the best interest rate loans according to myFICO.com.
- 163 points lower than a perfect 850 FICO credit score.
- 687 score would be a “D” rated score on the VantageScoreSM, scale.
- 303 points lower than a perfect score in the VantageScoreSM scoring model
- 214 points away from the best tier of 901+ for VantageScoreSM
- 143 points away from a perfect score on the PLUS score system, which scale goes from 330 to 830.
Which credit score did you get? Check out my post on what a credit score includes. If you have a non-FICO score, you should probably get your FICO credit score to see what most lenders see. myFICO Score Watch monitors your FICO score by delivering email alerts and cell phone text message alerts each time your FICO score changes.
Annoying Myth: Paying off Full Each Month Doesn’t Build Credit Scores – Episode #106
Annoying Credit Myth
This is starting to be a pet peeve of mine. There are so many “so-called” experts out there in the credit space and it’s really starting to annoy me. Why am I so peeved? Well, the lack of good advice is the kicker. The latest – A website written by someone promoting payday loans [generally, I hate anything with 300% interest rates, but hey, that's just me]. Anyway, this guy says that by paying off the entire balance in full each month, the credit bureaus don’t see you as really borrowing any money at all. His article reads as a message to help someone to take on more debt and perhaps find themselves in need of a payday loan package. Perhaps, he just has his facts wrong. But, I find it annoying.
Since I have not carried a balance ever, well as long as I can recall, this means that I must not have a good credit score. Nonsense. In fact, I’ve achieved an 831 FICO in the past few years and currently have FICO scores in 800 range. In all my years at myFICO.com, I never heard this myth to be true. In fact, the card issuers sometimes refer to people who payoff their bills each month as “freeloaders” because we don’t get charged interest or late fees. The reality is the statement “paying off the entire balance in full each month, the credit bureaus don’t see you as really borrowing any money at all” is flawed. Paying off balances before they are due DOES show something about your credit behavior and IS a good prediction of risk. Remember, while credit card issuers want you to be late, no financial institution wants you to default.
